Diamond doesn’t die

Diamond is a cultural currency that is recognized as precious and holds value irrespective of the physical boundaries of countries. It is the same piece of stone that pitted kingdoms against each other. Kohinoor is an example of such a legacy that used to exchange hands frequently like a world cup winning trophy does every four years. Although both symbolize a triumph, there’s a big difference between the two: a world cup winning trophy can be designed and created every four years till eternity but that's not the case with diamonds. It is a natural resource with a limited supply and an ever-growing demand. It is estimated that by 2030, only 30% of the demand can be served by natural diamonds. And what about the rest, 70%? Will they have to hold their purchase for the next year? Luckily, the answer is no. Thanks to new-age technologies we have Lab-grown diamonds now that can bridge the widening demand-supply gap. These Lab-grown diamonds have the same physical, chemical, and optical properties as the mined diamonds. The best part is a lab-grown diamond is not only pocket-friendly but also shinier and has lesser defects.

Preparation of Lab-grown diamonds

There are two popular methods of growing the diamonds in a lab:

1. High-Pressure High Temperature (HPHT Process): The resulting diamond contains impurities and the method is quite popular in China.
2. Chemical Vapour Deposition (CVD Process): The resulting diamond is of Type II A category, which is the purest form of a diamond.

Kohinoor, the famous 105-carat (38 gram) diamond, is a naturally occurring Type II A diamond mined from Golconda. Originally the diamond was 191 carats (38 gram) which reduced to 105 carats (21 gram) after undergoing recutting in 1852.

Diamond and its categories

Below are the four categories of Diamond out of which, Type II A is the purest form of Diamond. But there’s one catch: Unfortunately, only 2% of naturally occurring diamonds are Type II A and the rest 98% contain impurities in one form or the other. Because of the controlled environment that can be maintained in a laboratory, purity level can be ensured so that 100% of the grown diamonds are Type 2 A.

Fig. Categories of Diamond

Exploring India’s diamond market potential

1. For quite a long time, diamond is seen as a woman’s best friend ( a catchphrase popularised in a Marilyn Monroe movie). Attempts can be made to introduce diamond as daily wear rather than on special occasions only.
2. India has the biggest millennial population of around 40 crores. Based on a study, 80% of this millennial generation values experiences over expensive possessions. Affordable financing options and rental jewelry can invite a lot many aspirational Indians to the diamond fold.
3. One carat of Lab grown diamonds saves roughly 500 liters of water and 500 tonnes of land. The development of environment-friendly ecolabels can prove to be a stepping stone for socially conscious customers.
4. Diamonds are infamous for the infighting and rivalries that they have invited over the years. One can never forget the dark history of Blood diamonds. A Fairtrade certification signifying the miners getting a fair share of the pie would improve the business topline.
5. India’s diamond markets in Jaipur and Surat, although informal, are known for their polishing and designing. The businesses can be formalized with standard practices by converting tacit knowledge into explicit codes.